MJBiz Buyers Guide: Retail Strategy 23 - 9

MJBizDaily Buyers Guide Retail Strategy
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" It's critical that you understand your consumer base-and even more so that you can adjust and
pivot as the data comes in that supports or debunks your theories, " says Beatty.
Prior to opening Josephine & Billie's in Los Angeles, Beatty's company created social media
accounts and began conducting customer surveys, giving the team an opportunity to understand
the surrounding communities and who was most likely to visit the store.
" The insights definitely changed some of the ideas and concepts we had, " Beatty says of the
strategy. " For example, we knew we had competition nearby from unlicensed dispensaries, so we
made sure that our pricing was excise tax inclusive, so that the taxes added at the register weren't a
surprise or deterrent. "
Beatty also explains that understanding the economic demographics of the surrounding
communities was key to setting prices.
" It's more difficult for me to move $80 eighths in my
neighborhood than it is for me to move $30 eighths, as we
have customers from all income brackets, " she adds. " So,
diversity of products and price points was critical. "
" There is nothing more important than developing
your customer profiles, " adds Millican, who has helped
build Cookies into an internationally recognized brand.
" Customer relationship management (CRM) combined
with a loyalty program is the most powerful way to build
out your customer profiles, drive sales through targeted
messaging and maximize retention. "
DRIVING SALES WITH DATA
In addition to customer surveys and loyalty programs,
data is an effective tool for developing inventory plans.
" Customer relationship
management (CRM)
combined with a
loyalty program is
the most powerful
way to build out your
customer profiles,
drive sales through
targeted messaging and
maximize retention. "
This can include analyzing internal sales data to know
what customers are buying and browsing or reviewing
industry-wide data like the kind presented in the annual
MJBiz Factbook.
" A successful dispensary creates its strategy around the data, maintaining a healthy number of
SKUs on the menu that generate the cash flow required to continue buying inventory, " says Curran
of Acreage Holdings. " Clean, precise data allows retailers to understand what customers are
purchasing and make informed decisions on which products are worth stocking. "
" By monitoring inventory trends, business owners can make better decisions on which products
should be reordered and which products should be ordered in lesser quantities or ultimately
discontinued, " adds Archuleta of High Desert Relief. " This will allow for better delegation of budget
toward brands or products that are in higher demand. "
- Crystal Millican,
Cookies
For Lilach Mazor Power, whose Giving Tree Dispensary sits just north of the busy Phoenix cannabis
market, her team's thorough data-collection strategy digs deep into micro and macro sales trends
to help guide inventory allotment.

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MJBiz Buyers Guide: Retail Strategy 23

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